Settlement of Historical Contractual Licence Dispute

27 September 2022

Instem plc
(“Instem” or the “Company”)

Settlement of Historical Contractual Licence Dispute

Further to the update provided in the Company’s 2021 final results (released 26 April 2022), Instem plc (AIM: INS), a leading provider of IT solutions to the global life sciences market, announces that, following a German court hearing on 17 March 2022, full and final settlement has now been reached in respect of a one-off, historical contractual licence dispute dating back to 2017 with a former customer of Instem (the “Dispute”).  The Dispute has no bearing on current operations.

Instem has agreed to pay a EUR 1.48m (approximately £1.3m) settlement, of which its insurer has agreed to contribute EUR 0.45m (approximately £0.4m), (the “Settlement”). It was a negotiated settlement with the customer and is not an admission of fault on Instem’s behalf.

As previously announced, the Company had created a provision of £0.25m in respect of the Dispute. Therefore, the net charge to the Group’s FY22 P&L following this settlement will be approximately £0.64m which will be accounted for as a non-recurring, exceptional item.

The Settlement will result in a net cash outflow of approximately £0.9m that will be made during October.

For further information, please contact:

Instem plc Via Walbrook
Phil Reason, CEO  
Nigel Goldsmith, CFO  
Singer Capital Markets (Nominated Adviser & Joint Broker) +44 (0) 20 7496 3000
Peter Steel  
Alex Bond  
Rachel Hayes  
Stifel Nicolaus Europe Limited (Joint Broker) +44 (0) 20 7710 7600
Ben Maddison  
Alex Price  
Richard Short  
Wallbrook Financial PR Tel: +44 (0) 20 7933 8780
Tom Cooper instem@walbrookpr.com
Nick Rome  
Joseph Walker  

 

About Instem

Instem is a leading provider of IT solutions & services to the life sciences market delivering compelling solutions for Study Management and Data Collection; Regulatory Solutions for Submissions and Compliance; and Informatics-based Insight Generation.

Instem solutions are in use by over 700 customers worldwide, including all the largest 25 pharmaceutical companies, enabling clients to bring life enhancing products to market faster. Instem's portfolio of software solutions increases client productivity by automating study-related processes while offering the unique ability to generate new knowledge through the extraction and harmonisation of actionable scientific information.

Instem products and services address aspects of the entire drug development value chain, from discovery through to market launch. Management estimate that over 50% of all drugs on the market have been through some part of Instem's platform at some stage of their development.

To learn more about Instem solutions and its mission, please visit instem.com.